Elevators travel next to electronic boards displaying stock figures at the National Stock Exchange of India Ltd. (NSE) building in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Stocks Radar: InterGlobe Aviation, HCL Tech, HCC, PC Jeweller

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Indian equity benchmarks opened lower today, tracking losses in major Asian markets and on Wall Street. Losses were led by HCL Technologies, Wipro, Tata Motors, and Eicher Motors.

The S&P BSE Sensex Index fell as much as 0.3 percent to 35,069.41, while the NSE Nifty 50 Index fell as much as 0.38 percent to 10,677.2.

The market breadth was firmly tilted in favour of sellers. Sixteen out of 19 sectoral gauges compiled by the BSE fell, led by S&P BSE Realty Index’s 1 percent decline. Among the gainers, the metal index rose the most, up 0.6 percent.

Here Are The Stocks Moving The Markets This Morning:

IndiGo: Big Earnings Miss

Matters got worse for InterGlobe Aviation, the parent of IndiGo, after the airline’s earnings in the fourth quarter missed estimates by a wide margin. The counter has seen heavy selling since the announcement of the resignation of long-time President Aditya Ghosh.

In today’s session, shares of InterGlobe Aviation extended losses and fell as much as 7.3 percent, the most in seven months, to Rs 1,244.5.

InterGlobe Aviation Ltd.’s profit missed analyst estimates by a wide margin due to higher fuel expenses, lower airfares, and foreign exchange losses.

Earnings Highlight:

  • Revenue up 20 percent to Rs 5,799 crore
  • Net profit down 73 percent to Rs 118 crore
  • EBITDAR down 16 percent to Rs 1,123 crore
  • EBITDAR margin at 19.4 percent versus 27.5 percent

The stock hit a four-day losing streak today, it’s longest streak since March 19. Trading volume was 12.4 times the 20-day average.

Biocon: Slumps On FDA Observations

Shares of the Bengaluru-based pharma company fell as much as 4.5 percent, most in almost two months, to Rs 634.3.

The U.S. drug regulator issued a form 483 with seven observations after completing a pre-approval inspection of the company’s sterile drug product manufacturing facility at Bengaluru this week, according to the company’s exchange filing. Observations are largely procedural and not critical, aiming at continuous improvement, it added.

Form 483 is issued when the U.S. FDA finds possible violations of the U.S. Food Drug and Cosmetic Act after an investigation.

The stock extended a two-day decline period today although it has given positive returns of 18.8 percent so far this year.

Sical Logistics: New Contract Buzz

Shares of the Chennai-based logistics services firm rose as much as 6.6 percent to Rs 224.

Sical Logistics Ltd. has been awarded with a letter of acceptance by Northern Coalfields for mechanical excavations for a contract price of Rs 1,345 crores for excavation of 145 million bank cubic metres over a period of 51 months.

Trading volume of the scrip was 118.8 times the 20-day average. The stock has declined around 16 percent so far this year.

PC Jeweller: Losing Its Sheen

Shares of the jewellery maker and retailer lost nearly 15 percent in trade this morning before clawing back some ground. It has now declined for nine straight trading sessions and is poised for its longest crash since November 2013.

The stock has made steady losses since the start of 2018, falling as much as 79 percent.

HCL Tech: Plunges Again

Shares of the New Delhi-based information technology services firm fell as much as 6.9 percent, the most in two and half years, to Rs 930.8.

Heavy selling in HCL Technologies Ltd. continued for a second day in a row after the company’s fourth quarter net profit missed estimates.

Also Read: HCL Tech Q4 Profit Meets Estimates Led By Next-Gen Services

The stock has lost around 10 percent in the last two trading sessions. Trading volume was 3.7 times the 20-day average.

Brokerage and research firms Nomura, Antique Stock Broking, and HSBC all downgraded the company's stock rating following its poor earnings performance. Still, around 61 percent of analysts tracked by Bloomberg have a ‘buy’ rating on the stock, 12 recommend ‘hold’ and the rest have a ‘sell’ rating. The 12-month Bloomberg consensus target price is Rs 1094.5.

HCC: Headed For Steepest Decline As Unit Defaults

Shares of the Mumbai-based infrastructure construction firm fell as much as 24.2 percent, the most in nine and a half years, to Rs 17.7.

Hindustan Construction Company Ltd.’s unit, Lavasa Corporation Ltd., is considering a resolution plan for its outstanding debt and is in the process of restructuring bonds after a payment default. Lavasa defaulted on dues payable to bond holders and also has external borrowing from banks and financial institutions, the company said in an exchange filing.

The relative strength index, as indicated by Bloomberg, is 22, indicating that the stock may be oversold.

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